Choosing an ERP system – some additional tips

Do not reproduce the most common mistakes when you choose ERP…

One of the most common mistakes people make when selecting and implementing an ERP system (CRM / MRP) is to compare only the end price of this type of investment. The management team frequently sends inquiries to industry-known IT companies and selects a business partner offering the lowest possible price. To find out that this solution is unfavorable, you should compare the choice of ERP system, for example to buy a car for a company. In that case, are we also comparing only the final price? Of course not! Almost everyone comes here in details. We want the car to be durable, economical, aesthetic and comfortable. Therefore, we pay attention to engine capacity, horsepower (HP) capacity, type of gearbox (automatic, manual), inspection frequency, financing and many other aspects. The same principle applies when choosing an ERP system for your business. Here also the suitability of choice and benefits associated with the implementation of modern enterprise management software is influenced by a number of factors that the system should meet.

Get professional knowledge about ERP / CRM / MRP

Often mistakes in choosing or implementing an ERP system are due to the “I do not know” principle. By eliminating the earlier comparison, not everyone who buys a car is an automotive expert. However, before buying we go into details, gain knowledge, meet other friends and choose cars based on quality to price. We are not limited to comparing the final prices available on the market for vehicles. Investing in an ERP system that will help you manage almost all key areas of your business needs to gain expertise and insight into the details. It is worth answering a few questions:

• What are the different ERP systems available on the market? • what are the available functionalities and which are useful to me (will they benefit me)? • What are the differences between companies implementing such software and on what basis they base their work? • What is the ERP implementation project really about?

You do not have to be an expert, but it’s worth getting basic knowledge

Such knowledge will come in the future. It will allow you to consciously choose and properly implement software that really suits your business needs. Decision makers who simplify the choice of the ERP system to compare end prices risk that the implementation process for the company will not be successful at all and hidden costs can become a serious burden on the company’s budget. Dropping this responsibility to consulting companies is not the solution either. Mostly, the consulting firm is not responsible for choosing and implementing an ERP system, so this is short-sighted. The ultimate responsibility and loss will fall on managers (decision makers)! Knowledge of the core requirements that Enterprise Resource Planning (ERP) software should support can verify information from the implementation company. The outsourcer is well-versed in the specifics of ERP systems, but he does not know the nature of his (your) business as much as his managerial staff.